Bitclave Illegal ICO to Return $25M to Investors, SEC Announces

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Fri, 05/29/2020 - 10:52
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Vladislav Sopov
The Securities and Exchange Commission has stopped another beneficiary of the 2017 bubble. Instead of ‘leveraging the personal data’, Bitclave will pay back all investors
Bitclave Illegal ICO to Return $25M to Investors, SEC Announces
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Yesterday the United States Securities and Exchange Commission released an official statement about the unfortunate fate of BitClave, the U.S.-based ICO project with Slavic roots.

Meaningful relief to investors

According to the SEC order, the BitClave project, incorporated as BitClave PTE Ltd., conducted an unregistered initial coin offering that started in June 2017.

The project managed to raise cca. $25.5M from 9,500 investors. They received Consumer Activity Tokens or CAT, Ethereum-based coins. The regulator highlights that CAT had all of the characteristics of a security.

E.g. the team of BitClave actively promoted its listing on third-party exchanges and emphasized the opportunity of its price to grow in the future.

Despite this fact, all coding and marketing activities of the product are frozen and its team is showing no interest in maintenance or further development of the platform.

Severe penalty

The team of Bitclave reached an agreement with the SEC to refund all $25M to investors through a dedicated Fair Fund.

Also, they are being charged a prejudgment interest of $3.5M, and a penalty of $400,000. CAT must be removed from all trading platforms and permanently disabled by Fair Fund managers.

It should be reminded that BitClave raised funds for the development of a decentralized search engine and personal data processing system.

Recently, the SEC reached an agreement with another ICO from 2017, Enigma. This team must refund $45M to ENG token holders and pay a $0.5M civil penalty. Furthermore, the project is obliged to register ENG as a security and to send periodic reports to the SEC.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)